UltraTech Cement To Acquire Majority Stake In India #CementsUltraTech #adani #ambani #indiacements

UltraTech Cement To Acquire Majority Stake In India Cements

UltraTech Cement, India's leading cement producer and a flagship company of the Aditya Birla Group, has announced a Rs 3,954 crore deal to acquire a controlling stake in India Cements. This strategic move is set to bolster UltraTech's presence in the highly competitive southern states of India, particularly Tamil Nadu.

The board of UltraTech Cement approved the acquisition of a 32.72% stake in India Cements from its promoters and their associates at a price of 390 rupees per share, amounting to Rs 39.54 billion ($472.38 million). This purchase is in addition to the 23% stake UltraTech acquired in June. Following this transaction, UltraTech's total stake in India Cements will exceed 55%, necessitating an open offer to buy additional shares from public shareholders at the same price, as per regulatory requirements.
The acquisition is part of UltraTech's broader strategy to dominate the Indian cement market, which is projected to nearly double in value to $49 billion by 2029, driven by significant infrastructure investments under Prime Minister Narendra Modi's government.

"This deal will help UltraTech Cement meet its production target of 183.5 million metric tons by the fiscal year ending March 2027," said Ashutosh Murarka, a research analyst at Mumbai-based Choice Broking. "We expect the deal momentum in India's south to continue," he added.

UltraTech's acquisition includes 28.42% from promoters Srinivasan N, Chitra Srinivasan, Rupa Gurunath, and SK Asokh Baalaje, along with 4.30% from Sri Saradha Logistics. The total deal, once completed and regulatory approvals obtained, will significantly expand UltraTech's footprint in southern India.
The acquisition follows UltraTech's Rs 1,900 crore purchase of a 23% stake in India Cements in June. The latest move aims to leverage operational efficiencies by acquiring ready-to-use assets, reducing the time to market compared to greenfield projects.

#ultracements #adityabirlagroup #indiacements #adanigroup #ambani